Andrew L Dcunha
Mumbai, Sep 28: The Indian markets closed in the red, falling less than 0.5 per cent a day after posting nearly 3% rally yesterday as weakness in global markets kept haunting Indian investors. Investors have been waiting for the bailout plan but the report said that the euro zone was divided over terms of Greece's second bailout. The BSE Sensex ended at 16,446, down 78 points and the S&P CNX Nifty ended at 4,946, down 25 points.
Capital goods, metals and auto sectors led the decline while technology, FMCG and realty showed some resistance. Reliance Capital (-7.22%), Jaiprakash Associates (-5.17%), Reliance Infrastructure (-4.89%), Sesa Goa (-3.57%), and Siemens (-3.40%) were amongst the major Nifty losers. Tata Steel, Sesa Goa, Hindalco Industries,Jindal Steel and SAIL, down 2-3% each, were the other prominent losers from the Metals' space..Larsen & Toubro, ICICI Bank and Bharti Airtel dragged the Sensex down for the day. They accounted for a 68 point loss to the BSE benchmark index. DLF, ITC, NTPC, ONGC and Infosys, up nearly 1-3% each, were the prominent gainers on the Sensex Markets across the globe were trading flat and struggling to move into positive territory as concerns regarding the Euro-zone officials' ability to tackle the debt crisis resurfaced. Global equity markets rallied sharply on Tuesday, boosted by hopes that euro zone policy makers were working to increase the size of the European Financial Stability Facility, the region's bailout fund.
In Asia, markets ended mixed on hopes that the eurozone leaders have edged closer to a solution to the region's debt crisis. Japan’s Nikkei Stock Average advanced 0.1%, the Hang Seng and Shanghai Composite indices slipped 1% each.. Euorpean market is trading flat on hope and fear on future of Greece as policymakers are divided into how to save Greece.
Gold prices declined by Rs 75 to Rs 26,940 per 10 grams in the national capital today due to sluggish demand at prevailing higher levels amid a weak trend in the Asian region. Gold in Asian markets, which normally sets the price trend on the domestic front, dropped by 1.1% to $1,632.05 an ounce in Singapore.
Rebound in Euro and corporate activities leading to corporate dollar inflow kept rupee stronger today. The partially convertible rupee was at 48.75 per dollar, stronger than Tuesday's close of 49.065/075 at 5.30 p.m
Andrew L D Cunha, Managing Director, WinWin Fin Advisory Pvt. Ltd. Mangalore. Email: finadvisoryltd@yahoo.com
